Stellar Resources Limited · ASX:SRZ
Stellar Resources — Investor Presentation (November 2019)
32 slides from Stellar Resources's investor presentation, Nov 11, 2019
Slide 1: Investor Presentation – Heemskirk Tin Project
1 For personal use only Investor Presentation HEEMSKIRK 11 November 2019 TIN PROJECT ASX: SRZ www.stellarresources.com.au
Slide 2: Heemskirk Tin Project - Overview
2 HEEMSKIRK TIN PROJECT - OVERVIEW For personal use only E n vi a b l e p r o j e c t l o c a t i o n S e c u r e t e n u r e o ve r A u st ra l i a ’ s b e st p o r t f o l i o o f t i n a s s e t s U p d a t e d M i n e r a l R e s o u r c e E s t i ma t e ( M a y 2 0 1 9) H e e msk i r k
Slide 3: Enviable Project Location
3 ENVIABLE PROJECT LOCATION WEST COAST TASMANIA – AUSTRALIA’S LARGEST AND MOST PRODUCTIVE For personal use only TIN FIELD Stellar owned (100%) tin properties: • Heemskirk Project (Queen Hill, Severn, Montana and Oonah deposits) • Razorback and St Dizier Satellite deposits • Large Exploration Licen
Slide 4: Best Portfolio of Tin Assets in Australia
4 BEST PORTFOLIO OF TIN ASSETS IN AUSTRALIA For personal use only Secure Tenure: ML’s over Heemskirk deposits and St Dizier Large EL Package Providing Further Upside/ Flexibility
Slide 5: Heemskirk Updated Mineral Resource (May '19)
5 HEEMSKIRK UPDATED MINERAL RESOURCE (MAY ‘19) For personal use only Classification Deposit Tonnage Total Sn Contained Cassiterite Cu Pb Zn mt % Sn t % of total Sn % % % Indicated Upper Queen Hill 0.32 1.0 3,230 87 0.2 2.1 1.0 Lower Queen Hill 0.65 1.4 9,230 97 0.0 0.1 0.1 Severn 1.15 1.0 11,500 99
Slide 6: Competitive Grade/Tonnage Position
COMPETITIVE GRADE/TONNAGE POSITION 6 Bisie Alphamin Please refer to the following slide for project benchmarking For personal use only 5.1mt @ 4.5%Sn assumptions including; information sources, project stages & project resource categories 2µ
Slide 7: Project Benchmarking Assumptions
7 Project Benchmarking Assumptions For personal use only Project Company Country Project Total Total Total Measured Indicated Inferred Source / Company Annouoncemnt Date Stage Resource Resource Resource Resource Resource Resource Tonnes Grade Contained in Total in Total in Total (Mt) (%) Tin (kt) Bi
Slide 8: Heemskirk Tin Scoping Study (October '19)
8 HEEMSKIRK TIN SCOPING STUDY (October ‘19)* For personal use only ~350,000tpa underground mine, processing plant, tailings storage and surface infrastructure Mining of Queen Hill and then Severn (2 of the 4 Heemskirk deposits) for first 10 years Open pit mining of St Dizier satellite deposit
Slide 9: Attractive Scoping Study Economics
9 ATTRACTIVE SCOPING STUDY ECONOMICS For personal use only Heemskirk Scoping Study Base Case - Key Outcomes Low All-In Sustaining Cost of ~US$13,100/t Unit Total LOM of tin generating ~34% operating margin Ore Production (Mt) 3,695,386 Sn Grade (LOM Ave) (%) 0.94 based on US$20,000/t tin price ass
Slide 10: Sensitivity Analysis Demonstrates Robustness
10 SENSITIVITY ANALYSIS DEMONSTRATES ROBUSTNESS For personal use only Sensitivity analysis demonstrates the project economics remain robust within most of the range of tin price (±20%) and exchange rate (±9%) scenarios considered Project only becomes uneconomic at the combination of the highest
Slide 11: Low Pre-Production Capital Expenditure
11 LOW PRE-PRODUCTION CAPITAL EXPENDITURE For personal use only Low Total pre-production capital cost of ~A$57m to an accuracy of ±35% A$8m Mining capital cost for production decline at Queen Hill estimated by Mining One A$34m Processing Plant (350ktpa) and Pre-production Capital Expenditure S
Slide 12: Competitive Operating Cost Structure
12 COMPETITIVE OPERATING COST STRUCTURE For personal use only Unit All In Sustaining Cash Costs (AISC) of ~US$13,100/t to an accuracy of ±35% – comparable to Renison Tin and comfortably in lower half of global cost curve Cash margin of US$6,800/t tin or 34% of US$20,000/t tin price assumed in ba
Slide 13: Scoping Study Mine Plan - Heemskirk
13 SCOPING STUDY MINE PLAN - HEEMSKIRK For personal use only Mine life of 10 years at Heemskirk (Queen Hill and Severn) with St Dizier adding an 11 th year ~350ktpa average ore production rate @ 0.94% tin Long hole stoping underground mining method Sequential development; commencing at shall
Slide 14: Scoping Study Mine Plan – St Dizier
14 SCOPING STUDY MINE PLAN – ST DIZIER For personal use only Low cost open pit mining from St Dizier included in the final year of project 409,179t @ 0.90% Sn In-pit diluted Indicated Mineral Resource 4.7:1 average strip ratio of after application of 10% mining dilution and 95% mining recovery
Slide 15: Metallurgy & Processing
15 METALLURGY & PROCESSING Renison Tin flow-sheet tested at Proposed Tin Processing Plant For personal use only bench scale using drill core from Severn, Queen Hill & St Dizier Test-work undertaken by ALS Burnie and supervised by Worley Circuit optimised using Severn sample – potential for fur
Slide 16: Heemskirk – Environment & Community
16 HEEMSKIRK – ENVIRONMENT & COMMUNITY For personal use only Notice of Intent submitted to Tasmanian EPA and environmental assessment program agreed (DPEMP) No environmental impediments identified by Stage 1 surveying of mine, tailings transport and storage sites Mining Leases granted for 12 y
Slide 17: 2020/21 Work Plan and Budget
17 2020/21 WORK PLAN AND BUDGET For personal use only PFS Drilling - ~17 holes (6,800m) to increase Queen Hill and Severn Indicated Resource to ~3.3Mt and to support a Probable Reserve) Pre Feasibility Study (18 months) (A$) Metallurgical testwork to focus on improving Drilling - Heemskirk Proba
Slide 18: Heemskirk Could Become the Next Renison
18 HEEMSKIRK COULD BECOME THE NEXT RENISON For personal use only Renison, Australia’s oldest, largest & highest-grade tin mine is located 18km to the NE of Heemskirk Heemskirk and Renison share the same ore genesis and geology Heemskirk deposits drilled to a depth of 500m – all deposits open a
Slide 19: Early Tin Production Potential at Razorback Satellite Deposit
EARLY TIN PRODUCTION POTENTIAL 19 AT RAZORBACK SATELITE DEPOSIT Open pit operated from 1975-1978 For personal use only producing 158 tonnes tin 57 historic holes drilled between 1958 and 1982 Encouraging results from 2018 trench and face samples Exploration target of 180,000t to 220,000t @ 0
Slide 20: Montana Flats Exploration Upside
20 MONTANA FLATS EXPLORATION UPSIDE For personal use only EL13/2018 adds 3 km of strike length along the northwest trending, tin-mineralising Oonah and Montana Faults All tin deposits and major silver mines lie along or between the Oonah and Montana Faults Silver miners of the 1900s largely ig
Slide 21: Tin Price Expected to Recover in 2020
21 TIN PRICE EXPECTED TO RECOVER IN 2020 For personal use only Tin supply tightening as the largest producers, China and Indonesia, cut production in response to low prices Mine development queue is limited – only one new mine developed (Bisie in DRC) in the last 20 years and no significant expl
Slide 22: Tin Price Expected to Recover in 2020
22 TIN PRICE EXPECTED TO RECOVER IN 2020 For personal use only “Shanghai Metals Markets (SMM) expect tin prices to rebound above US$20,000/t by the end of 2019 as tight ore availability and maintenance-caused production cuts at China’s largest tin producer, Yunnan Tin, will lead to a sharp supply
Slide 23: New Technology to Drive Tin Use
23 NEW TECHNOLOGY TO DRIVE TIN USE For personal use only Tin ranked as the metal best placed to benefit from new technologies Tin use in electrical and energy storage applications is emerging and could be potentially disruptive New uses of tin could have a major impact on market size
Slide 24: The Investment Proposition
24 THE INVESTMENT PROPOSITION For personal use only Investment in the best tin project in Australia – highest grade undeveloped tin project in Australia and second highest globally Low cost investment – market capitalization significantly undervalues Stellar’s tin assets Heemskirk Scoping Study comp
Slide 25: Disclaimer
25 DISCLAIMER For personal use only FORWARD LOOKING STATEMENTS This presentation may include forward-looking statements. Forward-looking statements include, but are not limited to statements concerning Stellar Resources Limited’s planned activities and other statements that are not historical facts.
Slide 26: Appendix
26 For personal use only APPENDIX FINANCIAL SUMMARY BOARD OF DIRECTORS GEOLOGY SECTIONS
Slide 27: Share Price Yet to Reflect Solid Achievements at Heemskirk Tin
27 SHARE PRICE YET TO REFLECT SOLID ACHIEVEMENTS AT HEEMSKIRK TIN For personal use only COMPANY OVERVIEW 100% owner of Heemskirk Tin Project, 150km south of Burnie, Tasmania Stand- out high grade resource ( 1.1% Sn) Focused on Heemskirk Tin Project development with vision to be a major tin pro
Slide 28: Board of Directors
EXPERIENCED AND MULTI-DISCIPLINARY 28 WITH STRONG GLOBAL CONNECTIONS BOARD OF DIRECTORS For personal use only PHIL HARMAN, NON-EXECUTIVE CHAIRMAN GEOPHYSICIST Over 30 years experience in BHP Billiton minerals exploration THOMAS WHITING, NON-EXECUTIVE DIRECTOR Past and present Director of GEOPHYSICIS
Slide 29: Geology – Queen Hill and Severn
29 GEOLOGY – QUEEN HILL AND SEVERN For personal use only Schematic W-E Cross-Section 3700N, Showing Queen Hill and Severn Tin Deposits
Slide 30: Severn Deposit
30 SEVERN DEPOSIT For personal use only Severn Long Section Showing All Mineralised Zones (2017 Drillholes labelled) 400m Strike Extent 200µ 380m Dip Extent 3m – 50m Thickness OPEN
Slide 31: Queen Hill Deposit – Long Section
31 QUEEN HILL DEPOSIT – LONG SECTION For personal use only Queen Hill Long Section Showing All Mineralised Zones (2017 Drillholes labelled) 400m Strike Extent 200µ 400m Dip Extent 2m – 25m Thickness OPEN
Slide 32: For personal use only
32 For personal use only STELLAR Level 17, 530 Collins Street Melbourne VIC 3000 RESOURCES Phone +61 3 9692 7222 Fax +61 3 9077 9233 LIMITED www.stellarresources.com.au
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